Property news

Two estate agents expelled by property ombudsman

03/06/2009
 
Two estate agencies have been expelled by the property ombudsmen scheme because they failed to pay awards made against them.

The agencies, one in Merseyside and one in London, were both informed of the decision a month ago asked for their dismissals to be delayed while they paid their outstanding sums.

However, this has not been done and therefore the expulsions have been confirmed.

Property ombudsman Christopher Hamer made awards totaling £3,724 against Brooklands in Merseyside, following two complaints, and £817 against DP Estates in London following a single complaint.

Bill McClintock, chief operating officer of the Property Ombudsmen service, said: "Both these firms are involved in property sales with DP Estates also covering lettings.

"As a result of their dismissal from our scheme they are no longer registered with an approved redress scheme as the law now requires for agencies involved in residential property sales.

"We will be advising other estate agency bodies, and the Office of Fair Trading, about the decision taken by our disciplinary council to dismiss these two firms.

"The public should be aware that these agencies will need to be able to produce evidence of registration with an alternative redress scheme if they are to continue to sell residential property in the UK."

He explained legally they could still be active in property lettings, but consumers are warned they would have less protect compared to the thousands of other letting agencies that are signed up to ombudsman schemes.

"It is extremely rare for agents not to abide by the decisions of the Property Ombudsman, Christopher Hamer, and these expulsions show that the scheme has effective sanctions when needed," Mr McClintock said.

"Ultimately, lack of registration with an approved redress scheme means no UK estate agency can take any part in residential property sales. Those who ignore the law possibly face a fine of up to £1,000 from trading standards officers, who are aware of our decision regarding these two firms."